Startup India Seed Fund Scheme

May 15, 2024
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As a part of the “Startup India” program, the Startup India Seed Fund Scheme was introduced in 2021 to facilitate the process of creating a robust startup ecosystem and providing financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.

Description Who is it for? Benefits
To provide monetary support for proof of concept, prototype development, product trials, market, and commercialization Startups using Technology as their core product or service Under this scheme, Financial assistance up to Rs. 50 lakh will be provided to startups at an early stage through incubators
Startup India Seed Fund Scheme

Table of Contents

Eligibility

  • Should be recognised by DPIIT.
  • Startups should not have received more than Rs 10 lakh of monetary support under other significant government schemes.
  • The Startup shall have been in existence for no more than two years at the time of application.
  • Should be using technology as its core product or service to create innovative solutions in different sectors.
  • Must have a business idea to develop the product with a scope of scaling
  • According to the Companies Act of 2013 and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the company at the time of application to the incubator.
  • The seed support is generally available in grants and debt/convertible debentures.

Application procedure for Startups

The application procedure for availing the seed fund from the incubators by the startups under the StartUp India Seed Fund Scheme is as follows:

Startup India Registration

  • Go to https://seedfund.startupindia.gov.in/.
  • On the top right side of the homepage, click the 'Login' button, then the 'Create an Account' option at the bottom of the "Login" tab.
  • The ‘Startup India’ registration page will open.
  • After filling out the form, click the 'Register' button.
  • An OTP will be sent. Enter the OTP and click the ‘Submit’ button.

Startup India Seed Fund Application

  • Go to the website again and click on the ‘Apply Now’ button on the right-hand side of the homepage.
  • Click on the ‘Apply Now’ button under the ‘For Startups’ option and log in using the username and password registered.
  • The application form will open. Put in all the details, upload the documents, and click on the ‘Submit’ button.
  • The application will be submitted for the selection of the startup.

Selection of Startups for the Scheme

The Eligible Incubator will select startups for this scheme based on the following criteria:

  • Idea
  • Feasibility
  • Novelty
  • Fund Utilization Plan
  • Business Plan
  • Presentation
  • Potential Impact

Benefits

To register a company in the U.S., several essential criteria must be met.

  • Under this scheme, up to Rs 50 lakh in financial assistance will be provided to startups at an early stage through incubators.
  • The incubator will disburse the seed fund to an eligible startup:
    - As a grant for validation of “prototype development, proof of concept or product trials”-  
    Up to Rs. 20 Lakh        
    - Investment for commercialization, market-entry, or scaling up through debt-linked instruments -
    Up to Rs. 50 Lakh
  • Once incubated, physical infrastructure, testing support, mentoring for prototype or commercialization, human resources, and legal compliances are provided to the startups, all by the incubators.
  • For eligible startups, income tax and capital gains tax exemptions are available.

Post funding process

Each incubator must track specific criteria for each beneficiary startup. Every beneficiary startup must present the reports to its incubators periodically. The data is submitted to Startup India in real-time via their web dashboards and further to the EAC quarterly. Each Startup’s return on investment is also reported by the designated incubator.

  • Proof of concept
  • Prototype development
  • Progress of product development & field trials
  • Turnover of startup
  • Progress of market launch
  • Quantum of loan, angel, or VC funding raised
  • Jobs created by startup

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What is Winding up of a Company?: Process and Modes Explained

What is Winding up of a Company?: Process and Modes Explained

The winding up of a company is the process of dissolving a company and distributing its assets to claimants. Also known as liquidation, winding up typically occurs when a company is insolvent and unable to pay its debts when they are due. However, a solvent company may also be wound up voluntarily by its shareholders and directors.

In India, the winding up of companies is governed by the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016 (IBC). The IBC has significantly changed the winding up regime in India and introduced a time-bound insolvency resolution process

Table of Contents

What is the Winding Up of a Company?

Winding up a company refers to the legal process of closing its operations permanently. It involves selling the company's assets, settling its debts and liabilities, and distributing any remaining surplus among shareholders according to their rights. Once the process is complete, the company is dissolved and ceases to exist as a legal entity. Winding up may be voluntary, initiated by members or creditors, or compulsory, ordered by a court.

The main reasons for winding up a company include:

  • Ceasing the company's operations
  • Collecting the company's assets
  • Paying off the company's debts and liabilities
  • Distributing any remaining assets to the members

The main reasons for winding up a company include:

  • Inability to pay debts (insolvency)
  • Completion of the purpose for which the company was formed
  • Expiry of the period fixed for the duration of the company
  • The passing of a special resolution by the members to wind up the company

Key Aspects of Winding Up of a Company

The winding up of a company involves several key aspects that need to be considered:

1.  Appointment of Liquidator

A liquidator is a person or entity responsible for managing the winding-up process of a company, including selling assets, settling liabilities, and distributing remaining funds to stakeholders. A liquidator is appointed to manage the winding up process. He is appointed by members or creditors in voluntary winding up or by the court in compulsory winding up. 

2.  Realisation of Assets

The liquidator takes possession of all the company's assets and realises them into cash. This may involve selling the company's property, plant and equipment, collecting debts from debtors, and recovering any unpaid capital from the contributors.

3.  Payment of Liabilities

The liquidator settles all the company's liabilities, including debts owed to creditors, outstanding taxes and employee dues. The order of priority for payment is fixed by law, with secured creditors being paid first, followed by unsecured creditors and members.

4. Distribution of Surplus

After settling all the liabilities, surplus assets are distributed among the members in proportion to their shareholding. Preference shareholders are paid first, including any arrears, as per their rights. Once their claims are fully settled, the remaining surplus is allocated to equity shareholders in proportion to their shareholding. This process adheres to the company’s articles and legal requirements, ensuring an equitable distribution.

5. Dissolution of Company

Once the winding up process is complete, the liquidator submits a final report to the Tribunal or the ROC. The Tribunal then orders the dissolution of the company, and its name is struck off from the register of companies.

Types of Winding Up

There are three main modes of winding up of a company under the Companies Act 2013:

  1. Compulsory Winding Up of a Company (By the Tribunal)
  2. Voluntary Winding Up of a Company

a) Members' Voluntary Winding Up

b) Creditors' Voluntary Winding Up

  1. Winding Up Subject to the Supervision of the Tribunal

Let us discuss each of these types in detail.

1. Compulsory Winding Up (By the Court)

Compulsory winding up of a company is when a company is wound up by an order of a court or tribunal. This is also known as "winding up by the court". The court may order a company to be wound up on various grounds specified in Section 433 of the Companies Act, 1956 (now governed by Chapter XX of the Companies Act, 2013).

Compulsory winding up of a company is initiated by a petition filed before the National Company Law Tribunal (NCLT) by:

  • The company itself
  • The company's creditors
  • The company's contributors
  • The Registrar of Companies
  • Any person authorised by the Central Government

The grounds for compulsory winding up include:

  • Inability to pay debts
  • Acting against the sovereignty and integrity of India
  • Conducting affairs in a fraudulent manner
  • Failure to file financial statements or annual returns for five consecutive years
  • The Tribunal is of the opinion that it is just and equitable to wind up the company

If the NCLT is satisfied that a prima facie case for winding up is made out, it admits the petition, appoints an official liquidator and makes an order for winding up.

2. Voluntary winding up of a company

Voluntary winding up is when a company is wound up by its members or creditors without the intervention of a court or tribunal. Voluntary winding up is initiated by the company itself by passing a special resolution in a general meeting. There are two types of voluntary winding up:

1. Members' Voluntary Winding Up

This occurs when the company is solvent and can pay its debts in full. A declaration of solvency is made by a majority of the directors, stating that they have made an inquiry into the company's affairs and believe that the company has no debts or will be able to pay its debts in full within three years from the commencement of the winding up.

2.  Creditors' Voluntary Winding Up: 

This occurs when the company is insolvent and unable to pay its debts in full. No declaration of solvency is made in this case. The creditors play a greater role in this type of winding up compared to a members' voluntary winding up.

In a voluntary winding up, the company appoints a liquidator in a general meeting to conduct the winding up proceedings.

3. Winding Up Subject to the Supervision of the Court

A voluntary winding up (whether members' or creditors') may be converted into a winding up by the Tribunal if the Tribunal is of the opinion that the company's affairs are being conducted in a manner prejudicial to the interests of the public or the company.

In such cases, the Tribunal may order that the voluntary winding up shall continue but subject to the supervision of the Tribunal. The Tribunal may appoint an additional liquidator to conduct the winding up along with the liquidator appointed by the company.

Winding Up a Company Process

The procedure for winding up of a company in India depends on the mode of winding up. Here is a step-by-step procedure for compulsory winding up of a company in India and voluntary winding up:

H3 - Compulsory Winding Up H3 - Voluntary Winding Up
1. The winding-up process begins when a petition is filed before the National Company Law Tribunal (NCLT) by creditors, shareholders, or the government. 1.Passing of special resolution for winding up: The process begins when shareholders pass a special resolution in a general meeting, requiring a three-fourths majority, to wind up the company.
2.Admission of Petition and Publication of Notice: Once the petition is accepted, the NCLT admits the case and orders the publication of a notice. 2. Declaration of solvency (in case of members' voluntary winding up): If the company is solvent, the directors must file a Declaration of Solvency with the Registrar of Companies (RoC).
3 Appointment of Provisional Liquidator: The NCLT may appoint a provisional liquidator to temporarily manage the company’s assets and prevent them from being misappropriated during the winding-up process. 3. Appointment of liquidator: After the special resolution, members appoint a liquidator to manage the winding-up, sell assets, settle liabilities, and distribute remaining funds.
4. The NCLT issues an order for the company’s winding up, which formally starts the dissolution process. 4. Giving of notice of appointment of liquidator to Registrar: The company must notify the Registrar of Companies (RoC) about the appointment of the liquidator.
5. The directors of the company are required to submit a statement of affairs to the liquidator. 5. Realisation of assets and payment of debts by liquidator: The liquidator takes control of the company’s assets, sells them, and pays off debts, prioritising secured creditors, then unsecured creditors.
6. Appointment of Official Liquidator: The NCLT appoints an official liquidator who takes full control of the company’s assets and liabilities. 6. Calling of final meeting and presentation of final accounts: After settling debts and realising assets, the liquidator calls a final meeting to present the final accounts, detailing the liquidation process and asset distribution.
7. The liquidator liquidates or sells the company’s assets to generate funds.The liquidator uses the proceeds to pay off the company’s creditors, including secured creditors, employees, and unsecured creditors, according to the legal priority order. 7. Dissolution of company: After approval of the final accounts, the company applies to the RoC for dissolution, and once approved, it is removed from the RoC register.
8.Submission of Final Report by Liquidator: Once all assets are realised and debts paid, the liquidator prepares a final report that details the liquidation process.
9. Dissolution of company: After the final report is submitted and all obligations are met, the NCLT issues a dissolution order, removing the company from the RoC register and formally ending its existence.

The process of winding up of a company in India is complex and involves several legal formalities. It is advisable to seek the assistance of a professional (such as a company secretary or a lawyer) to ensure compliance with all the requirements.

Example of Winding up of a Company

One notable example of the winding up of a company in India is the case of Kingfisher Airlines Limited. Kingfisher Airlines was a prominent Indian airline that ceased operations in 2012 due to financial difficulties and mounting debts.

In 2016, the Karnataka High Court ordered the winding up of the company on a petition filed by the Airports Authority of India, which was one of the company's creditors. The court appointed an Official Liquidator to take charge of the company's assets and manage the winding up process.

The liquidator faced several challenges in the winding up process, including the recovery of dues from the company's debtors and the sale of its assets. The company had a fleet of aircraft and other assets, which had to be valued and sold to pay off the creditors.

One of the major issues in the winding up of Kingfisher Airlines was the recovery of dues from its promoter, Vijay Mallya. Mallya had given personal guarantees for some of the loans taken by the company, and the creditors sought to recover these dues from him. However, Mallya fled to the UK, and the Indian authorities have been trying to extradite him to face charges of fraud and money laundering.

The winding up process of Kingfisher Airlines is still ongoing, and the liquidator is working to realise the company's assets and settle its liabilities. The case highlights the challenges involved in the winding up of a large and complex company with multiple stakeholders and legal issues.

The Kingfisher Airlines case also underscores the importance of timely action by creditors in the event of default by a company. Many of the company's creditors, including banks and airports, had allowed the debts to accumulate for several years before initiating legal action. This delay made it more difficult to recover the dues and increased the losses for the creditors.

In conclusion, the winding up of Kingfisher Airlines is a cautionary tale for companies and creditors alike. It highlights the need for effective risk management, timely action in case of default, and the importance of following due process in the winding-up of a company.

Conclusion

In conclusion, the winding up is a legal process of  liquidating a company's assets, settling of liabilities and distributing surplus to its members. It is a complex process that requires careful planning and execution, and the guidance of professional advisors. 

There are three modes in winding up under companies act 2013: compulsory winding up by the Tribunal, voluntary winding up by the members or creditors and winding up under the Tribunal's supervision. 

These modes of winding up have specific requirements and procedures. Proper planning and professional guidance can help minimise the impact on stakeholders like creditors, employees and members, ensuring a smoother and compliant winding-up process.

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Frequently Asked Questions

What does winding up mean?

Meaning of winding up of a company: It is the process of dissolving a company and distributing its assets to claimants. It involves closing down the company's operations, realising its assets, paying off its debts and liabilities and distributing the surplus (if any) to the members.

What is Creditors' Voluntary Winding Up?

Creditors' Voluntary Winding Up is a type of voluntary winding up of a company that occurs when the company is insolvent and unable to pay its debts in full. In this type of winding up, the creditors have a greater say in the appointment of the liquidator and the conduct of the winding up proceedings.

Who can be appointed as a liquidator?

A liquidator can be an individual or a corporate body. They must be independent and should not have any conflict of interest with the company being wound up. Usually, professionals such as chartered accountants, company secretaries, cost accountants or advocates are appointed as liquidators.

What is a Statement of Affairs?

A Statement of Affairs is a document submitted by the directors of a company to the liquidator in a winding up. It shows the particulars of the company's assets, debts and liabilities, the names and addresses of the creditors, the securities they hold and other relevant details.

What is the process of dissolution of a company?

The process of dissolution of a company involves the following steps:

a. Passing a special resolution to wind up the company

b. Appointment of a liquidator to manage the winding-up process

c. Realisation of the company's assets and settlement of its liabilities

d. Distribution of any surplus assets to the members

e. Submission of the final report by the liquidator to the Tribunal or ROC

f. The passing of an order by the Tribunal dissolving the company

g. Striking off the company's name from the register of companies by the ROC

What are the effects of winding up a company?

The main effects of winding up of a company are:

  • The company ceases to carry on its business except for the beneficial winding up of its business.
  • The powers of the board of directors cease, and the liquidator takes over the management of the company.
  • Legal proceedings against the company are stayed.
  • The company’s assets are realised and distributed to the creditors and members.
  • The company is eventually dissolved and ceases to exist as a legal entity.

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

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What is Company Valuation & How to Calculate It? Methods Explained

What is Company Valuation & How to Calculate It? Methods Explained

When you hear about startups raising millions of dollars or listed companies being called “overvalued” or “undervalued,” the concept at the centre of it all is company valuation. Whether you’re an investor evaluating opportunities, a business owner planning to raise capital, or a professional analysing market trends, understanding how a company’s value is calculated is essential.

In this guide, we’ll break down what company valuation means, how to calculate it, key formulas, real-world examples, and why it’s essential.

Table of Contents

What is the valuation of a company?

Company valuation is the process of determining a business's financial worth or fair value. It is not just about looking at profits or assets- it’s about considering both financial and non-financial factors that influence the company’s value.

For example:

  • Financial factors include revenue, profit margins, debt levels, and cash flows.
  • Non-financial factors include brand reputation, customer base, intellectual property, and market potential.

A valuation helps stakeholders, founders, investors, lenders, or acquirers understand the true worth of a company for purposes like fundraising, mergers & acquisitions, taxation, or stock market investing.

How to calculate company valuation?

There is no single method to calculate company valuation. Instead, there are three primary approaches commonly used:

1. Income Approach

  • Focuses on the company’s future earnings potential.
  • The most common method here is the Discounted Cash Flow (DCF) model.
  • DCF estimates the present value of future cash flows, adjusted using the Weighted Average Cost of Capital (WACC).
  • Useful for startups and growing companies where future cash flows are expected to be significant.

2. Asset Approach

  • Focuses on the net value of the company’s assets after deducting liabilities.
  • Often called the Net Asset Value (NAV) method.
  • Formula: NAV = (Fair Value of Total Assets – Total Liabilities).
  • Suitable for asset-heavy businesses like real estate, manufacturing, or holding companies.

3. Market Approach

  • Values a company by comparing it with similar businesses in the market.
  • Uses multiples such as:

    • Price-to-Earnings (P/E) Ratio
    • Price-to-Sales (P/S) Ratio
    • Price-to-Book Value (PBV) Ratio

  • Helps determine whether a company’s stock is undervalued or overvalued compared to peers.

Key metric: EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) is often used in valuation since it reflects a company’s operating performance without non-cash and non-operating costs.

Company Valuation Formula

There is no one universal formula for valuation- different methods use different formulas. Here are some of the most widely used:

1. Asset Approach (Net Asset Value)

NAV = Fair Value of Assets - Total Liabilities

Example: If a company has assets worth ₹100 crore and liabilities worth ₹40 crore, its NAV = ₹60 crore.

2. Income Approach (Discounted Cash Flow)

Where, 

CFt = Cash flow in year t

W ACC = Weighted Average Cost of Capital

t = Time period

This gives the present value of all future cash flows.

3. Market Approach Ratios

  • P/E Ratio
  • P/S Ratio

  • PBV Ratio

These ratios are compared with industry averages to determine valuation.

Company Valuation Examples

Example 1: Discounted Cash Flow (DCF)

Suppose a company is expected to generate free cash flows of ₹10 crore annually for the next 5 years. The discount rate (WACC) is 10%.

= ₹37.9 crore (approx).

If the market cap of the company is ₹30 crore, the stock may be undervalued.

Example 2: Relative Valuation (P/E Ratio)

  • Company A’s P/E ratio = 18x
  • Company B’s P/E ratio = 12x
  • Industry average P/E ratio = 15x

Here, Company A is trading above the industry average (possibly overvalued), while Company B is trading below (perhaps undervalued).

Importance of Calculating a Company’s Valuation

  • For Investors: Helps identify whether a stock is overpriced or a good buying opportunity.
  • For Founders: Essential during fundraising, mergers, acquisitions, or strategic exits.
  • For Lenders: Determines the borrowing capacity and creditworthiness of a business.
  • For Markets: Provides transparency and helps maintain fair pricing of securities.
  • For Business Growth: Guides decision-making on expansions, investments, and restructuring.

Frequently Asked Questions (FAQs)

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Frequently Asked Questions

What is the information required to calculate a company’s valuation?

To calculate a company’s valuation, you need both financial and non-financial information. Key details include:

  • Financial Statements – Balance Sheet, Profit & Loss Statement, and Cash Flow Statement.
  • Revenue & Profitability Metrics – EBITDA, Net Profit, Gross Margin.
  • Assets & Liabilities – Tangible and intangible assets, debts, and goodwill.
  • Market Data – Share price, industry benchmarks, comparable company ratios.
  • Growth Projections – Future revenue, profit, and cash flow estimates.

Discount Rate – Weighted Average Cost of Capital (WACC) or required return rate.

Which company has a high valuation in India?

As of 2025, Reliance Industries Limited (RIL) and Tata Consultancy Services (TCS) consistently rank among the highest-valued companies in India by market capitalisation. Reliance dominates in energy, retail, and telecom, while TCS is a global IT services leader. Other high-valuation players include HDFC Bank, Infosys, and ICICI Bank.

How to calculate a company's valuation from equity?

A company’s valuation from equity is generally calculated using:

Equity Value = Share Price × Number of Outstanding Shares

For example, if a company’s share price is ₹1,000 and it has 1 crore outstanding shares:
Equity Value = ₹1,000 × 1,00,00,000 = ₹10,000 crore

Equity Value represents the market’s perception of the company’s worth, excluding debt.

How to calculate company valuation from revenue?

Valuing a company from revenue is usually done using the Price-to-Sales (P/S) ratio:

Valuation = Revenue × P/S Multiple

For instance, if a company generates ₹500 crore in annual revenue and the industry average P/S multiple is 4x:
Valuation = 500 × 4 = ₹2,000 crore

This method is often used for early-stage or loss-making companies where profits aren’t stable.

What are the ways to value a company?

The main ways to value a company include:

1. Asset Approach – Based on Net Asset Value (NAV).

  1. Formula: NAV = Total Assets – Total Liabilities

2. Income Approach – Based on future earnings or cash flows.

  1. Most common: Discounted Cash Flow (DCF) method.

3. Market Approach – Based on market multiples and comparables.

  1. Metrics: P/E ratio, P/S ratio, PBV ratio, EV/EBITDA.

4. Comparable Transactions Method – Comparing the valuation of similar companies sold/acquired.

5. Industry-Specific Methods – For example, startups often use Revenue Multiples, while banks may use Book Value multiples.

Swagatika Mohapatra

Swagatika Mohapatra is a storyteller & content strategist. She currently leads content and community at Razorpay Rize, a founder-first initiative that supports early-stage & growth-stage startups in India across tech, D2C, and global export categories.

Over the last 4+ years, she’s built a stronghold in content strategy, UX writing, and startup storytelling. At Rize, she’s the mind behind everything from founder playbooks and company registration explainers to deep-dive blogs on brand-building, metrics, and product-market fit.

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Credit Guarantee Fund for Startups | Razorpay Rize

Credit Guarantee Fund for Startups | Razorpay Rize

To improve the credit delivery system and make credit more accessible to small and medium-sized businesses, Credit Guarantee Scheme (CGS) was launched. It accelerates the access to finance for the underprivileged, making the availability of finance from conventional lenders to new-generation entrepreneurs.

Description Who is it for? Benefits
To improve the credit delivery system and make credit more accessible to small and medium-sized businesses For Micro and Small Enterprises The credit facilities are eligible to be covered both term loans and/or working capital for a collateral-free loan up to a limit of Rs. 200 lakh is available for individual MSE on payment of guarantee fee to the bank by the MSE.

A credit guarantee is provided to banks and financial institutions by CGTMSE (Trust) under this scheme so that they can, in turn, lend collateral-free credit to MSEs.

Application procedure

There are namely four types of Credit Guarantee schemes:

1. Credit Guarantee Scheme for banks

Borrowers avail of the scheme through banks.

2. Credit Guarantee Scheme for NBFCs

Borrowers avail of the scheme through eligible NBFCs.

3. Sub-debt scheme

Credit guarantee coverage for distressed MSMEs.

4. PM Svanidhi

Credit facilities for the street vendors.

Table of Contents

Eligibility

  • New and existing Micro and Small Enterprises engaged in manufacturing, service, or retail activity, excluding Educational Institutions, Agriculture, Self Help Groups (SHGs), Training Institutions, etc.
  • All service sector enterprises under the MSMED Act are eligible for coverage.
  • Must be a “First-generation” entrepreneur.

Application procedure for Startups

  • Go to https://www.cgtmse.in/Home.
  • The homepage will open.
  • Click on the “Register” option seen on the homepage.
  • Enter your details and click on “Get OTP.
  • After typing in the OTP, the registration will be completed.
  • Login” to the page again. You will have to fill in the required information such as GST details, Bank Account details, and ITR.
  • Click on “Submit” to avail the benefits under this scheme.
  • Download the financial report, calculate the guarantee, etc, if needed.

Benefits of the Scheme

  • The guarantee cover available under the scheme is to the extent of 75 percent of the sanctioned amount of the credit facility.
  • Credit or loans in the northeast region, UT of J&K, and UT of Ladakh for credit facilities up to Rs 50 lakh, are covered by an 80 percent guarantee.
  • For micro and small businesses operated or owned by women, as well as SC/ST individuals, the guarantee cover stands at 85%.
  • For up to 5 lakh micro-enterprise loans, the guarantee cover stands at 85%.
  • The credit is without any collateral or third-party guarantees.

The guarantee will commence from the e-date of payment of the guarantee fee. It will run for the agreed term credit tenure in the event of term loans / composite loans and for a period of 5 years in the case of working capital facilities only granted to borrowers or for such period as the Guarantee Trust may specify in this regard.

Frequently Asked Questions

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  • Businesses looking for minimal compliance
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  • Firms sharing resources with limited liability 

Frequently Asked Questions

What types of loans are covered under the Credit Guarantee Fund?

The Credit Guarantee Fund may cover various types of loans, including term loans, working capital loans, equipment financing, and other credit facilities extended by participating lending institutions to eligible borrowers.

How does the Credit Guarantee Fund work?

Under the Credit Guarantee Fund scheme, lending institutions extend loans to eligible borrowers without requiring traditional collateral. Instead, the loans are backed by a guarantee provided by the Credit Guarantee Fund, which covers a certain percentage of the loan amount in case of default.

Are there any fees associated with accessing credit under the Credit Guarantee Fund?

Borrowers may be required to pay certain fees, such as guarantee fees or processing charges, to avail of credit under the Credit Guarantee Fund scheme. The specific fees and charges may vary depending on the terms and conditions of the scheme.

Can borrowers avail of multiple loans under the Credit Guarantee Fund scheme?

Yes, borrowers may be eligible to avail of multiple loans under the Credit Guarantee Fund scheme, subject to the approval of lending institutions and compliance with the fund's guidelines.

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Dhaval Trivedi
Basanth Verma
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@foxsellapp
#razorpayrize #rizeincorporation
Dhaval Trivedi
Prakhar Shrivastava
foxsell.app
We would recommend Razorpay Rize incorporation services to any founder without a second doubt. The process was beyond efficient and show's razorpay founder's commitment and vision to truly help entrepreneur's and early stage startups to get them incorporated with ease. If you wanna get incorporated, pick them. Thanks for the help Razorpay.

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Dhaval Trivedi
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Hey, Guys!
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Dhaval Trivedi
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